Expert: Stocks are underowned—here's why

Buy on dips here, markets likely going higher: Pro

Bessemer Trust's Rebecca Patterson said Friday investors should consider allocating more of their assets in stocks on the next dip because equities are underowned.

"When you look at fund flows over the last couple of years in ETF mutual funds, two-thirds have gone into fixed income; only one-third has gone into stocks," the financial planning company's chief investment officer said on CNBC's "Squawk Box." "I think valuations suggest the market is fully priced, but not overly expensive, looking broadly."

Patterson added she is not concerned about a Fed interest rate hike since "we have a ton liquidity out there," and she thinks the stock market is poised to keep going higher for at least another year.

"[A rate hike] has already been priced in," she said. "The short-term impact on the equity market is basically nothing. It's insignificant. I think that's what the Fed wants. They want to telegraph this. Rates go up, and nobody cares."

Read More GDP will be factor for markets

U.S. futures traded slightly lower Friday morning in anticipation of the Commerce Department's revision of first-quarter gross domestic product data. The department's previous estimate suggested an anemic 0.2 percent annualized growth rate.

Bonds are NOT the 'big short

Rates... what's normal? 3% the new 6%: Ed Keon

As investors maintain an eye on rising bond yields and lower bond prices, QMA Managing Director Ed Keon said Friday that to call bonds "the big short" is an exaggeration.

"There is a fundamental supply and demand story. Older people ... want to have safe, secure sources of income so there's tremendous demand for fixed income products on a global basis and the supply is not as robust as a couple of years ago," Keon said in another "Squawk Box" interview.

He added, however, that investors within the bond market should not expect high returns as many central banks are keeping benchmark interest rates low. "I think you'll get weak returns, but not a collapse, simply because, if I'm right about this fundamental story, that will help keep prices high and yields low by historical standards."